Edited by Asiautos Auto Part
According to reports, on August 8, MG Motor said it plans to build a manufacturing plant and a research and development center in Mexico to make Mexico a market hub for Latin America.
Zhang Wei, head of MG Motor Mexico, said in a statement: "This move will not only allow us to produce cars locally, but also collect market intelligence in Latin America." MG's goal is to "make Mexico a center for growth and expansion for SAIC and MG Motor in Latin America and the Caribbean." However, MG did not disclose the amount of investment in Mexico, and there is currently no specific construction time plan.
The new factory in Mexico will continue MG's global expansion. MG has factories in China, Thailand and India, and has previously said it plans to open a factory in Europe. According to data from market research firm Dataforce, MG is the best-selling Chinese car brand in Europe, with sales of 127,425 vehicles in the first half of this year.
However, the timing of MG's efforts to increase localization in Mexico is not good. In April, it said that under pressure from the United States, the Mexican federal government would no longer provide investment incentives to Chinese automakers. In addition, former US President Trump stated that if he is elected as the next US president, he will impose a 100% tariff on imported Chinese cars made in Mexico.
For this reason, Tesla, which had previously planned to build a super factory in Mexico, said it had suspended the plan and would re-evaluate its plan to invest in a new super factory in Mexico after the US election.
MG did not mention the US market in its latest plan, but added that its sister brand Zhiji also plans to enter the Mexican market.
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